NSW Labor looks to clean up act

In an effort to clean up an image tarnished by a corruption inquiry into its former ministers, NSW Labor has brought in a new rules designed to provide greater transparency.

In an Australian first, Labor MPs will have to reveal their taxable incomes.

They will also have to declare the pecuniary interests of their spouse or dependents, or any family member holding a contract with the state government.

"I will not tolerate corruption," Opposition Leader John Robertson told a Labor function in Parramatta on Sunday.

"If you do the wrong thing, you will get caught and face the consequences."

Labor MPs will be banned from having second jobs under the plan, and ministers will have to publish their diaries online from March 31.

They will disclose meetings, phone conversations and interactions with lobbyists or private companies.

In government, Mr Robertson said Labor would create an independent probity panel to oversee the approval of mining licences and appoint an inspector general for parliamentary standards, to investigate and fine members who breach the code.

The reforms come in the midst of a public inquiry into former NSW Labor ministers Ian Macdonald and Eddie Obeid, who face the Independent Commission Against Corruption (ICAC) over the granting of mining licences in the Bylong Valley.

Mr Robertson lamented that the ICAC proceedings were taking focus away from what he said were the government's failures, such as cuts to jobs, hospitals and schools.

"These new standards go a long way in demonstrating that Labor had to improve its behaviour and ensure that what we're seeing play out now can't occur in the future," he told reporters.

He said the rules mean that if ICAC finds Mr Obeid and Mr Macdonald acted corruptly, they will be expelled from the Labor Party.

He added that he would ban factions from binding MPs, a practice identified as one way powerbroker Mr Obeid maintained his influence over the former Labor government.

It's believed Mr Robertson faced fierce opposition from the shadow cabinet over the reforms, and had to ask ministers to "back him or sack him".

But the opposition leader refused to comment on the supposed in-fighting, saying that people had expressed their views, but ultimately the rules were introduced because it would put "Labor back in the game".

NSW won't see an election until 2015 but with the federal election coming up in September, NSW Labor is using the new standards to clean up the party's image both in both arenas.

Premier Barry O'Farrell believes state Labor has a long way to go before regaining trust from the NSW public.

"No amount of belated posturing by Ian Macdonald's former cabinet colleague John Robertson, will change revelations heard at the ICAC that existing disclosure rules were broken by Labor MP's," he said in a statement.

Mr O'Farrell said his government would wait for ICAC's findings before it considered changing the rules, adding that only a rigorous oversight by an independent watchdog will make people think twice about breaking the law.

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